RAILWAYS XI

closed

The ELeventh Railway Project consists of new and on-going works in IR's investment program for the three years beginning April 1, 1971, and is a continuation of the previous IDA financed railway project, which covered the first two years of the plan. It will enable IR to meet projected increases in freight and passenger traffic and to continue modernizing the system and also to reduce operating costs. Of the total investment during the period, 40 percent will cover diesel and electric locomotives and rolling stock, 42 percent in track renewal and line capacity works, 6 percent in line electrification and the balance in various other works. Almost half of the funds required would be provided from internally generated funds of the railways. The government would contribute US$473 million equivalent as capital-at-charge, including the proceeds of the proposed credit and other foreign borrowing. A small balance would be covered by temporary loans from the government.